Substantial income expected for drug companies operating in Germany, says BMI

Despite the threat of austerity measures, the German government's focus on cost-containment within the pharmaceuticals and health care sector and the impact of generic competition as a result of the patent cliff, Germany will remain attractive to innovative drugmakers, according to a new report titled "Germany Pharmaceuticals and Healthcare Report Q3 2011 from Business Monitor International.

Furthermore, per capita spending is high, there is a sizeable pensionable population and regulations are transparent - factors the analysts believes will continue to bring in substantial income for companies operating in the country, says BMI.

This view is in stark contrast to the warnings of Eli Lilly chief executive John Lechleiter, who last week during a visit to the country warned that health reforms were not only harming innovation but was also likely to see drugmakers to not launch new drugs in Germany and cut back on investments in the country (The Pharma Letter July 11).